The governor of the State Bank of Pakistan (SBP) downplayed the growing global concern that there was an elevated risk of the country defaulting on its international debt obligations, saying it would pay the maturing debt on time. “Pakistan received a $1.5 billion loan from the Asian Development Bank (ADB) recently. Additional inflows from some other multilateral and bilateral institutions including the Asian Infrastructure Investment Bank (AIIB) are also expected soon,” explained Ahmed. The historical surge in the risk of default reflected the growing concerns of global investors on the timely re- payment of maturing debt. Global investors have taken positions in Pakistan’s US dollar-denominated bonds (Eurobond and Sukuk) in the international markets.

Source: The Express Tribune October 28, 2022 23:25 UTC